A board of directors is an organization chosen to represent shareholders and owners of a company and acts as a fiduciary in order to protect their investment. They formulate a high-level strategy for the Check Out company and supervise management by regularly interacting with and supporting senior executives, such as the CEO. They also establish governance systems by appointing officers for specific posts such as chair or president of the board.

Most boards have a mix of inside and outside members who are knowledgeable about an organization's inner workings as well as qualified individuals who are who are not employed by the company but with knowledge in a specific field. Some countries have laws that influence the structure of a board, setting guidelines for how many members are elected and the length of time they serve.

Boards are responsible for setting corporate policies, for example management and oversight, deciding whether to issue dividends, stock options or other plans for repurchase of shares or to appoint or dismiss top management, and bringing in or firing new members. They also make major decisions, such as mergers and acquisitions as well as appointing committees that work on specific tasks, like audit or compensation.

The most important responsibility is to protect shareholders' interests by providing transparency and timely accurate disclosure, particularly in financial reporting. This is why it's crucial that a company has a strong board of directors to ensure longevity and its success. Investors, too, are important to know the function of a company's boards of directors and how they're elected, as their actions can have a major impact on a company's profitability.